Ethan Allen Interiors Inc (ETD)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.15 |
| Financial leverage ratio | 1.54 | 1.58 | 1.77 | 1.94 | 1.90 |
Ethan Allen Interiors Inc's solvency ratios, based on the provided data, indicate a consistently strong financial position in terms of leverage and debt management.
- Debt-to-assets ratio: The company has maintained a very low debt-to-assets ratio of 0.00 across all reported years. This suggests that Ethan Allen has minimal reliance on debt to finance its assets, indicating a low financial risk in terms of asset coverage.
- Debt-to-capital ratio: Similarly, the debt-to-capital ratio has been consistently at 0.00, indicating that the company has not been using debt to fund its operations or capital structure. This further reinforces the notion of the company having a strong capital base relative to its debt obligations.
- Debt-to-equity ratio: The debt-to-equity ratio has also remained at 0.00 over the years, signaling that Ethan Allen's capital structure is primarily equity-financed and that the company has a strong equity cushion to cover its financial obligations.
- Financial leverage ratio: The financial leverage ratio has fluctuated slightly but generally remains at relatively low levels, with a peak of 1.94 in 2021. This ratio indicates that the company's assets are financed primarily through equity rather than debt, with the 2024 figure of 1.54 highlighting a decreasing reliance on debt.
In summary, Ethan Allen Interiors Inc's solvency ratios depict a consistently strong financial position with minimal debt obligations and a strong equity base. The company's prudent debt management practices have contributed to its overall financial stability and reduced financial risk.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 12.55 | 32.10 | 691.60 | 153.82 | 21.27 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Looking at the trend for Ethan Allen Interiors Inc from 2020 to 2024, we observe a substantial increase in the interest coverage ratio over this period.
In 2020, the interest coverage ratio was 21.27, indicating that the company generated operating income 21.27 times larger than its interest expenses. The ratio decreased in 2021 to 153.82 but remained at a healthy level showing the company's ability to cover its interest payments comfortably.
However, in 2022, there was a significant spike in the interest coverage ratio to 691.60, reflecting a substantial improvement in Ethan Allen Interiors Inc's capacity to pay off its interest obligations. This exceptional increase suggests a very strong financial position for the company in that year.
In the most recent years, the interest coverage ratio continued to depict solid performance, albeit with some fluctuations. In 2023, the ratio reached 32.10, indicating a lower but still healthy level of coverage. The most recent data point for 2024 shows an interest coverage ratio of 12.55, which is also indicative of the company being able to cover its interest payments comfortably.
Overall, based on the interest coverage ratios in the given period, Ethan Allen Interiors Inc appears to have effectively managed its interest expenses, with a strong ability to meet its debt obligations from operating earnings, highlighting a robust financial situation for the company.